China Aviation Supplies Co,. Ltd. was officially established on Tuesday following joint investment from five state-owned enterprises (SOEs) under the direction of the state assets watchdog.

The new company resulted from the reshuffle of China Aviation Supplies Import & Export Group Co., Ltd., a wholly-owned secondary subsidiary of the China Aviation Supplies Holding Company (CASC).

The new company was jointly funded by China Southern Airlines, China National Aviation Holding Company, China Eastern Airlines, the CASC and China Reform Holdings Co., Ltd.

China Southern Airlines is the biggest share holder with a 24 percent stake in the new company, while China Reform Holdings has the least shares, just 10 percent.

The new company aims to promote the efficient flow of aviation supplies assets, facilitate innovation in industrial security and serve state-owned aviation enterprises at the initial stage.

China is speeding up reorganization of its SOEs to improve their competitiveness. A merger of two tourism companies was announced early August.

There are currently more than 100 SOEs directly regulated by the central government, while many more are under the administration of local authorities.